Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
ARB witnessed a gradually increasing RSI divergence on the four-hour chart
There was significant whale activity on April 19 – could this affect a recovery?
Arbitrium [ARB] rose more than 45% on April 13, but entered a consolidation range of $1.58 – $1.80. ARB triggered a bearish breakout at the time of writing after a sharp Bitcoin [BTC] fall out of the $30k price range. But ARB temporarily stabilized near the dynamic 50-EMA (Exponential Moving Average).
Is your wallet green? Account ARB Profit Calculator
ARB also clocked one 5 million user base after launching its native token a month ago. The milestone reiterates increased network traction, but how will this affect the asset’s short- and medium-term prospects?
Will the bulls find footing?
Source: ARB/USDT on TradingView
ARB witnessed a price drop after hitting the channel’s upper limit of $1,798. The downtrend initiated a bearish breakout but stabilized around the 50-EMA of $1,536. At the time of writing, the stochastic RSI has reached oversold territory, meaning sellers may need a break soon.
If so, ARB could bounce back and go back to its channel. As such, buying at the current level (above $1.57) could offer a good risk ratio, especially if ARB rises to the channel’s midpoint of $1.70 or $1.798 and BTC reclaims the $30,000 price range. Buyers could wait for a local double bottom on the channel’s lower level or another pullback test before making a move.
However, a slot below 50-EMA and $1.4905 will invalidate the above statement. Such a downswing could send ARB down to $1.4265 or $1.3593. These levels can act as short sell targets in such a downtrend scenario.
Meanwhile, there was increasing RSI divergence with price action, which could play in favor of sellers. In addition, the ADX retreated, indicating further retrace or likely consolidation.
ARB saw significant whale activity
Source: Sentiment
How many are 1,10,100 ARBs worth today?
The sharp drop was followed by significant whaling activity, with 12 whaling transactions worth more than $1 million at the time of writing. In addition, development activity has improved tremendously in recent days, which could boost investor confidence in the token.
Sentiment, however, remained eerily negative despite recent improvements. As such, investors should follow BTC’s price action for better trade setups.
This post ARB Fuels a Bearish Breakout – Where Can Bulls Seek Returns?
was published first on https://ambcrypto.com/arb-inflicts-a-bearish-breakout-where-can-bulls-seek-re-entry/
